June 1, (THEWILL)- The Nigerian Senate has debunked reports that the National Assembly planned to transfer interest rate decisions from the Central Bank of Nigeria (CBN) to a committee to be chaired by the Minister of Finance.
Special Adviser to the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Prof. Uche Uwaleke, who made this known in a statement, said the amendment Bill to the CBN Act only proposes a Coordinating Committee as an institutional framework for the alignment of fiscal and monetary policies.
He added that the aim of the proposed Coordinating Committee is neither to usurp the roles of the Monetary Policy Committee (MPC) of the apex bank nor weaken the instrument independence of the CBN.
According to him, in view of the controversy this has generated, the Senate Committee on Banking, Insurance and Other Financial Institutions has postponed the planned public hearing to allow for further consultations with and inputs from key stakeholders.
The statement read: “My attention has been drawn to a misleading report currently circulating in the media that the National Assembly plans to transfer interest rate decisions from the CBN to a Committee to be chaired by the Minister of Finance.
“This is completely untrue.
“The fact is that the amendment Bill proposes a Coordinating Committee as an institutional framework for the alignment of fiscal and monetary policies. Its aim is neither to usurp the roles of the Monetary Policy Committee of the Bank nor weaken the instrument independence of the CBN.
“For the avoidance of doubt, section 12 of the current Act establishes the Monetary Policy Committee, as well as stipulates its functions and composition. These provisions are all retained in the amendment Bill.
“Be that as it may, let me seize this opportunity to inform you that in view of the controversy this has generated, the Senate Committee on Banking, Insurance and Other Financial Institutions has postponed the planned public hearing to allow for further consultations with and inputs from key stakeholders.
“As an objective and reputable media organisation, it would be appropriate to publish the correct position.”
